Do Auto Insurers Automatically Add Teens to Your Policy?

Question:

Answer:

Underwriting guidelines and rating systems vary from one insurer to another and are governed by state law, but, in general, car insurance providers will require that you disclose all household members

An auto insurer wants to be aware of the risk it is taking on, and part of that is being told about household members of driving age, whether that is a 16-year-old child or an 80-year-old relative who lives with you, and then the status of their licenses.  (See "Who can drive your car

If your car insurance company requires that you list your teenager on the policy, but he hasn't received a permit or license yet, he normally can be marked as unlicensed and should be unrated by the auto insurance company.

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By being classified as unrated, you teen shouldn't affect your auto insurance rates

If your teen, however, does decide he wants to be licensed, then you will have to notify your car insurer of this.  Many insurance companies won't require you to add a teen with just a permit, but others do.  When he is past his permit stage, all auto insurance providers will require him to be listed as a driver and your auto premiums will increase to cover him.  (See "A parent' guide to insuring a teen driver

If your child does get licensed and continues to live at home, but you won't let him drive your cars and don't want to pay for auto insurance for him, then see if you can exclude your young driver

Excluding a driver isn't allowed in all states, or by all insurers, but when it is permitted it means that by signing a named driver exclusion for a certain individual you won't pay for that person to be part of your policy. In return, if he did drive your car, there would be no coverage extended to him if there was an accident. 

Just remember, when you are shopping for cheap car insurance

Rating systems vary from one insurer to the next, so whether your child is licensed or not, shop around to find the best rates. A little time spent comparison shopping can save you hundreds, if not thousands, on your auto insurance premium.

The original article can be found at CarInsurance.com:
Do auto insurers automatically add teens to your policy?